In this recurring series, the partners and consultants of
MRA Global Sourcing share their learnings, observations, and the occasional
rant cultivated from years of experience in recruiting and placement for supply
management functions.

As 2017 begins, MRA musings is optimistic the hiring market
will continue to stay robust. Through the unprecedented shock and awe of the
past year when it comes to politics and social changes, companies kept forging ahead
with their hiring plans. Per the Bureau of Labor Statistics and the Dale
Carnegie Training Leadership Study, with the unemployment rate down to the
pre-recession levels, more and more workers may start actively contemplating
job changes. They predict that almost 40% of the workforce will be in play in
2017 so that is surely music to our ears.

For employers, of course it’s a
double-edged sword as it means that their other big problem will be
exacerbated, i.e. retaining their best and brightest. Just
as alarming is another significant revelation in this survey of 3100 workers, and that is why these employees may be leaving. While supervisors are usually
cited as a top three reason for leaving, in this case it’s partly that.
However, interestingly enough, there was a specific trait that caused the most
anguish and it pertained to supervisors not being externally reliable (honest
with others). Workers were four times more likely to leave the company if their
supervisors were less than forthright with their external partners compared
with supervisors that were transparent and ethical in all their dealings.

Taken in the context of our world of Supply Management, this
caught our attention. Since our function is so dependent on working
closely with suppliers, this recent study should serve as a timely reminder
that not only are there legal and ethical consequences to what we do, but team
members and direct reports are observing and taking their cue from their
leaders. If these workers find their supervisors to be disingenuous and
less than forthright, that will be enough of a catalyst for them to seek
greener pastures elsewhere. Companies will suffer not only from the brain-drain
of talent but a diminished reputation as they seek to backfill these openings.
Since a tarnished impression may linger long after these unreliable supervisors
and their team members leave the company, it’s important for our function to
continually train and live the values we preach, i.e. utmost integrity and
honesty, and fair and equitable dealings with both internal and external
stakeholders.

In a recently published book called ‘Why They Do It’, from
Harvard Professor Eugene Soltes, he covered the past decade of corporate
misconduct and malfeasance and what the costs are to their respective
companies. From the failings of corporate chieftains from Enron to Tyco
to inside trading at McKinsey to the Ponzi scheming of Madoff, these
occurrences have been regular fixtures across the business world. Most
of these white-collar crimes are not solely based on greed but in fact are
driven by intuition and gut feeling, according to Professor Soltes. Just
because we feel we may not be hurting anyone by manipulating some savings
numbers or backdating a contract, doesn’t mean it’s not wrong. Luckily for us,
there haven’t been any high profile CPO’s being hauled away that have made the
news so we definitely need to keep it way.

Looking forward, 2017 serves an even more crucial time for Supply Management to lead the charge in our companies on how best to protect our teams and our leaders from falling prey to temptation. By doing so, this will effectively mitigate corporate risk and liability, safeguard company reputation and ultimately help retain talent in a competitive marketplace.

Strategic Sourceror

StrategicSourceror.com is a leading industry blog that focuses on providing news, tips, and best practices for a variety of procurement, supply chain, and strategic sourcing categories.

This site is owned and operated by Source One Management Services, LLC; the leading consultancy providing strategic sourcing resources, procurement advisory consulting and procurement support services to hundreds of companies.

Continue to visit StrategicSourceror for your supply chain and procurement news and to see the latest tips, advise, and rants from the analysts, consultants, and category managers from Source One.

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About Source One

Source One Management Services, LLC is a leading procurement services provider. Since 1992, Source One has been providing companies in all industries with sourcing services including BPO, Benchmarking, Spend Analysis, Category Support, and RFX Management.